Republican Tax Plan Would Deal Financial Hit to U.S. Universities

"The Republican tax plan unveiled on Thursday stirred anger at U.S. universities, which said its proposals to tax endowments of private institutions and repeal a deduction for student-loan interest payments would hurt institutions and students," Reuters reports.

"The bill in the Republican-led House of Representatives would increase students’ cost of attending college by more than $65 billion between 2018 and 2027, according to an analysis by the American Council on Education (ACE), the lead lobby group for higher education.

The plan 'would discourage participation in postsecondary education, make college more expensive for those who do enroll, and undermine the financial stability of public and private, two-year and four-year colleges and universities,' ACE President Ted Mitchell said.

House Speaker Paul Ryan, the most powerful Republican in Congress, told a news conference the tax plan would allow the typical family of four to save around $1,182 a year, which could go toward college savings.

... Ending the interest deduction would hurt people's ability to afford an education, said Justin Draeger, president of the National Association of Student Financial Aid Administrators.

'For us, it's one thing to talk about whether these funds are the most effective use of government money to help people afford college,' he said. 'But it's another to use them as an offset in an unclear tax overhaul.'"

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